The Coffee Jar: Designing a Comprehensive Business Plan for Growth

This report provides a comprehensive business plan for The Coffee Jar, focusing on strategies for growth and expansion. It begins by analyzing key considerations for competitive advantage, including cost leadership, differentiation, and focus strategies. The report then evaluates growth opportunities using Ansoff's matrix, exploring market penetration, market development, product development, and diversification. It discusses analytical frameworks for competitive analysis and assesses potential funding sources, such as crowdfunding, bank finance, peer-to-peer lending, and personal savings, along with their benefits and drawbacks. The report culminates in the design of a detailed business plan for growth, including financial information, strategic objectives, and an assessment of exit or succession options. The Coffee Jar aims to provide different types of coffee, snacks, cakes, and pastries to its customers. The report analyzes the business plan for growth and expansion strategies, focusing on market analysis, financial information, and strategic objectives.

Planning for Growth

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
P1 Analysing and justifying key consideration ..........................................................................3
P2 Evaluating the opportunities for growth.................................................................................4
M1 Discussing the analytical framework....................................................................................5
D1 Critically evaluating the options and pathways.....................................................................5
P3 Assessing the potential sources along with their benefits and drawbacks..............................5
M2 Evaluating and justifying the adoption of appropriate source...............................................7
D2 Critical evaluation of potential sources..................................................................................7
P4 Designing business plan for growth including financial information and strategic objectives
......................................................................................................................................................7
M3 Developing business plan for growth and other frameworks for achieving the objectives 11
D3 Presenting coherent and in depth business plan for achieving the business objectives.......11
P5 Assessing exit or succession options by explaining the benefits and drawbacks of each
option.........................................................................................................................................11
M4 Evaluating the exit or succession options along with the recommendations .....................12
D4 Critical evaluation for the business options which are valid with recommendations .........13
CONCLUSION..............................................................................................................................13
REFERENCES................................................................................................................................1

INTRODUCTION
Planning for growth is helpful for organization which helps in growing and developing
the business in the market (Næss, 2021). The Coffee Jar is the company which provides the
customers with different products and services in the market.
Thus, it is analysed from the above report that evaluation of the growth opportunities by
justifying the considerations was being explained. Potential sources of funding were made
available to discuss the benefits and drawbacks in detail and appropriate manner. Along with
this, business plan for growth was framed by including the key details such as financial
information and strategic objectives for scaling up the business. Assessing of exit or succession
options for small business helped in explaining benefits and drawbacks of each option. There
were the key details and information which were regarding the business plan framed in
appropriate manner by depicting and initiating all the essential for the company which was taken
as The Coffee Jar.
MAIN BODY
P1 Analysing and justifying key consideration
It can be helpful for the companies to generate good return by maintaining competitive
advantage. Following strategies can help the small and medium firms like The Coffee Jar to
generate a better position in the industry:
Competitive advantage – It is termed as the process of selling the goods and services cheaper
than that of the competitive firms (Doody, 2021). This can help in generation of more profit by
increasing the sales of the shop. Some strategies that the enterprise can adopt:
 Innovation in the products produced can attract customers.
 Use of advanced technology can create satisfaction among the customers and achieve
value in the market.
 Enhancing the operations of the business can lower the cost of operations thereby
increasing profits.
It can be further explained with the help of Porter's Generic Strategy:
Cost leadership – It is important for small and medium firms like The coffee jar to lower prices
for their products. Only lowering the prices is not enough, but they should focus on scale of
economies, technology, material etc. This strategy can help in setting the price standards. Low

prices attract the customers and this generates sales which increases the overall profits for the
firm (Espinosa Gallego, 2018).
Differentiation – Differentiation along with cost strategy can maintain a unique position of the
enterprise in the industry. Here, the products are differentiated and innovated according to the
demands of the customers. Different customers have different perceptions and this is the reason
to innovate the products to increase the sales.
Focus – The Coffee Jar should focus on particular market segments. It is important to adopt
competitive strategies like focus strategy. In this the focus is on particular segment of customers.
It is essential to know which group of customers depending upon the age, gender and
many other reasons are interested in the products sold by the firm . This can help the enterprise
to cater the needs of particular group of people.
P2 Evaluating the opportunities for growth
In order to formulate the growth strategy, there is an approach known as Ansoff's growth
matrix which focuses on the companies existing products and the market. Adopting the following
strategies can help the firm to increase the sales and earn profits on the long run whether in the
existing or new markets. These four strategies are as follows:
Penetration of market – This strategy of penetration of markets defines the development of
existing products of the firm in the existing markets. This can help the enterprise to increase its
share in the market. This strategy helps many SME to increase their profits. It can further help
the firm to create satisfaction among the existing customers.
Development of market – Firms choose this strategy of developing the market by existing
products in new markets. The coffee jar can cater different markets by different customer
segments and target demographics like gender, age etc. it can expand its business regionally or
enter into foreign markets to increase its profits (Ferreira, 2018). This can allow the enterprise to
leverage its existing products and take them to new and different markets.
Product development – This strategy helps the firm to innovate the products in the existing
markets. This situation arises when the existing products become outdated or not any more
productive. It can be achieved by investing more in the research and development department to
develop the new product. It can also be achieved by acquiring rights to sell the products of

another firms. The products which are produces by a third party and giving them their own name
can help the firm increase their sales.
Diversification - This strategy involves diversification of products and the market. Here the
firm sells new firms in totally new markets. This helps the firm to increase their sales by
acquiring overall new opportunities for revenues and reduce the firm's dependency upon a single
product or market.
M1 Discussing the analytical framework
Competitive analysis of the firms includes study of competitive strategies, products, sales
etc. it is important to do competitive analysis for the small and medium firms like The Coffee
Jar. It helps the firm to gain overall knowledge about the rivals in the industry and how to
maintain a competitive advantage in the industry (Ferreira and et.al., 2018). The analysis can be
done with the help of Ansoff's growth vector matrix which can demonstrate the understanding of
competitive advantage in The Coffee Jar. Further, this can help the firm to increase sales and
overall profits of the firm by lowering prices than that of the rivals.
D1 Critically evaluating the options and pathways
The strategy of market penetration is less risky as it does involve any kind of new market or new
product and will maintain the share in the market. Market development strategy is the best suited
for the SME like The Coffee Jar as it does not include risk of product failure. Also, product
development is also suitable for the company as it involves catering the needs of different
segments of customers (Filimonau and et.al., 2019). The strategy of diversification is the riskiest
among all as there are chances of product failure and there are chances that the business does not
run successfully in the new markets.
P3 Assessing the potential sources along with their benefits and drawbacks
There arr many potential sources of funding for the big companies. However, it is not the case in
SME. Here, the sources are limited and have to be chosen correctly in order to prevent long term
debt fort the business. Following are some sources with their benefits and drawbacks:
Crowd Funding

Benefits - This kind of method is the most suitable as this does not require initial fees for
acquiring the funds. It is the fastest among all the sources if the firm is opting the method of
raising funds through crowd funding. Whenever the business is in need to search for feedback to
find any deviations and overcome those, this source can help them in fulfilling this function.
Drawbacks – this source need to be protected and avoidance of this can lead to stealing of the
concept of crowd funding a source to raise funds. Also, launching the source of crowd funding
requires huge amount research in the primary stage.
Bank Finance
Benefits – Bank finance is termed as a source of finance which is same as a term loan. It has to
be repaid on the basis of terms maybe long term or medium terms. The finance can be raised for
the lifetime of the firm on any asset of the firm.
Drawbacks – The major drawback of this source is that if the loan is not repaid on time then the
asset of the firm will be lost and it will be a major loss for the firm. As the loans are taken on
long term basis top raise higher level of funds so it involves payment of interests on loan.
Peer to peer lending
Benefits – It is raised by one another rather than a bank. This source is helpful and considered
appropriate for SME. This is because it gives higher level of returns and this can be used in the
business to further increase the profits. The finance raised by this source involves low rate of
interest which makes it the most suitable (Jang and et.al., 2019).
Drawbacks – This kind of sources are used when the firm wants to raise funds through informal
sources. This contains higher credit risk as most of the time the borrower is unable to pay the
amount. In this situation the government can not interfere in providing help to the lender.
Personal savings
Benefits – Sometimes the owner of the firm can raise funds through their personal savings. The
benefits of this type of savings is that it does not involve payment of interest or there is no need
to repay the amount of money raised.
Drawbacks – The major drawback of this source is the fact that if the business fails to operate
then all the money put in will be lost. It involves taking loans on personal assets and these can
involve assets owned by the family members.

M2 Evaluating and justifying the adoption of appropriate source
The most suitable source of fund is to raise funds through crowd funding and personal savings.
Both are appropriate for the firms like The Coffee Jar. Crowd funding can be used as it is fastest
and can be raised when the firms are in urgent need of finance. Personal finance is considered
appropriate because it does not contain payment of additional fees and no extra cost is required.
Therefore, the firm can choose from the above mentioned sources according to the demand of the
situation (Lee and et.al., 2018).
D2 Critical evaluation of potential sources
Crowd funding is used by firms that need to raise huge amount of funds in less time but for this
they have to pay higher amount of interest. Bank loan is another option for raising funds as it is
secured source of funds but contains huge interest payments. Peer to peer lending is good as
there is no involvement of documentation as it taken from peers but it is not a secured source of
fund. Moreover, finance are raised trough personal financing as it is owner's own money but it is
risky as the business might fail which results in overall loss.
P4 Designing business plan for growth including financial information and strategic objectives
1. Organization Name – The Coffee Jar
Executive Summary – It is the business plan which has been developed for The Coffee Jar. This
will help in providing the key points and information related to the company.
2. Background of Business – The Coffee Jar is the company which helps in providing the
customers some different type of coffee which are artisans coffee, home-made snacks, cakes,
pastries etc.
3. Vision, Mission, Objective and Goal –
Vision – To provide the customer best coffee and in different varieties related to fulfilling the
customers’ needs.
Mission – To achieve the targets and sales of the company to initiate growth and achieve the
results.

Objectives – To create and frame the market structure such that the products and services are
accepted.
Goals – To market the products and services such that the company is able to create value and is
able to idealise the overall growth.
4. Nature Products/Services – There are products and services which are produced by The
Coffee Jar and this helps in providing the products and services such as artisans coffee, home-
made snacks, cakes, pastries etc. These are some products which is helping the customers to
fulfil their wants and needs (Moro Visconti, 2019).
5. Capital Raised – The amount of capital which is raised is $90. This is the amount which is
raised by generating loans from the banks and other financial sources.
6. Stakeholders – Owners, investors and other key operational coffee partners and local
authorities, managers, employees are the shareholders of the company. This helps in knowing
who are the stakeholders of the company and how they are contributing towards the business
regarding its growth (Almeida and Santos, 2022).
7. Operation Plan – The key aspects included within the operational plan which are
understandable for The Coffee Jar are – resources funding, securing the investments of the
business, capital planning etc (Fichter and Tiemann, 2020). This is the operational plan which
constitutes the key factors mentioned here and due to this the operational plan is framed which
helps in knowing the key details about the company.
8. Marketing Plan – The marketing plan is framed with the help of 7 P’s. This constitutes –
Product – The products which The Coffee Jar provides to the customers are artisans coffee,
homemade snacks, cakes, pastries etc (Chernev, 2020).
Price – The cost of each products and service is different which helps in initiating the
perspectives related to the demand of the products of the company.
Place – The place where the company The Coffee Jar is situated is in London, UK. This helps in
understanding that the place is the major point of concerns while selling the products.

Promotion – Social media is the unique platform which helps in knowing that the promotion and
advertising of the products can be done appropriately through Instagram, Facebook, official
website (Chernev, 2020).
People – The people of the company are the employees and the other senior managers in position
of the company The Coffee Jar.
Process – The processes are the general operations which are being used and are idealized for the
products and services to be measured at large scale.
Physical Evidence – The physical evidence are the stores, customers and the employees of the
company.
9. Resources – The resources which are used by The Coffee Jar are the coffee machines and
other resources such as coffee beans etc. These resources help in understanding that there should
be allocation of right form of resources so that the company is able to effectively operate with its
machines and technology.
10. Time Line –
Activities Week 1 Week 2 Week 3 Week 4 Week 5
Name of the
Organization
Background of
Business
Vision,
Mission,
Objective and
Goal
Nature
Products/
Services
Capital Raised

Stakeholders
Operational
Plan
Marketing
Plan
Resources
Sales Target
SWOT Plan
Risk Factors
11. Sales Target – The sales target is based on how the profits and losses are managed and are
undertaken within the company.
12. SWOT Plan – The SWOT plan is described as below –
Strengths – The Coffee Jar provides premium rates which are made available for the products
and services which are provided to the customers. There is outstanding customer services
provided with the quality products and services.
Weaknesses – It becomes difficult to come up with a name but finally The Coffee Jar name was
put up in the market. All the systems and operations are operated manually (Benzaghta and et.al.,
2021).
Opportunities – The company can adopt new techniques and new innovation practices so that
The Coffee Jar is able to stabilize in the market. The company can deal with the customers
directly and this will help in promoting the concerns related to customer relationship.
Threats – There is high competition in the market. There is low profit margin. Maintenance of
the cash flow is difficult for the company.

13. Risk Factors – There are some major risk factors which are identified as major points within
the consideration of the company and these are mentioned as – over or under capitalization, big
picture ramifications, mismanagement of resources, lease and location of the agreements etc.
These are related with the risks which are mentioned within The Coffee Jar. These are the risk
factors which helps in understanding the concepts related to how effectively and in adequate
manner there are risk factors which helps in determining that these factors are also to be
measured in different manner.
M3 Developing business plan for growth and other frameworks for achieving the objectives
The business plan has been framed which included the information and details including
about The Coffee Jar. The company is also providing the aspects which are related to the
business plan which has been framed (Tipu, 2018). The appropriate strategies, frameworks and
objectives were included within the business plan which was done in appropriate manner. For
achieving the objectives, there is business plan framed and this helps in substituting the
perspectives related to the business growth and development at large scale in effective and
significant manner.
D3 Presenting coherent and in depth business plan for achieving the business objectives
This is the major point of concerns as how effectively and in appropriate manner the
business plan has been framed. This helps in analysing the factors, processes, plans and
frameworks in signified manner and with providing all the details of the company which The
Coffee Jar. The business plan was framed to achieve the processes which are undertaken so that
appropriate knowledge is gathered through the plan which has been framed. The business plan
thus helps in understanding the key determinants related to the understanding and idealizing the
areas of achieving the business objectives at large scale. This helps in stating the perspectives
which are included within the framework of business plan at large scale for the company.
P5 Assessing exit or succession options by explaining the benefits and drawbacks of each option
The succession options and the exit plan is beneficial in addressing the key details about
the company. The company’s current market situation helps in knowing the investing plan which

has been addressed and helps in analyzing the concerns related to the business. There are certain
exit strategies which are framed as –
Liquidation – Liquidation is the business process in which the business owners sell their assets.
It is the best option for the company to initiate and liquidate its business so that the business
recovers (Zagirnyak and et.al., 2019).
Advantages – It minimizes debt repayments; it helps in enabling staff to claim redundancy pay.
Disadvantages – Suppliers and creditors lose their money; shareholders may have to repay
illegal dividends.
Keeping Family Business – It is the type of business in which there is support from the family
members and the legacy of the business is continued at large scale.
Advantage – Owners are stable and there is commitment in the business, there is also flexibility
in the business.
Disadvantage – There is lack of family interest, there is lack of structure, there is also nepotism.
Public Offering – In this type of business, there are shares which are allotted to public or to
institutional investors (Honjo, 2021).
Advantages – The approach is extremely profitable, it helps in increasing the brand equity, there
is high discipline management.
Disadvantages – The process is very expensive, increased liability is possible, there is increase in
the regulatory oversight.
Selling Business in Market – In this type of business there are owners of this business who sell
their property at a certain price. This is the most popular exit strategy which is being used and
this is being recommended at large scale.
Advantages – It helps in allowing to pay off the personal debts, selling business helps in pursuing
the other businesses effectively and in significant manner.
Disadvantages – Planning to sell the business affects the staff. The legal cost of selling can be
expensive for the business.
M4 Evaluating the exit or succession options along with the recommendations
The succession planning and exit options are important for the businesses which are
idealized and this helps in understanding the concerns related to how the small businesses such
as Coffee shop businesses are solved. This helps in understanding the perspectives related to the